EUR/USD, GBP/USD, USD/CAD, USD/JPY Forecasts – U.S. Dollar Pulls Back As PCE Price Index Meets Forecasts

Key Insights

• EUR/USD moved away from recent lows as traders reacted to U.S. economic data.
• USD/CAD climbed back above 1.3450 as oil markets pulled back from 2024 highs. 
• USD/JPY tested the 148.00 level amid a lack of positive catalysts for the Japanese yen.  

U.S. Dollar

U.S. Dollar Index is losing some ground as traders react to PCE Price Index report, which showed that PCE Price Index remained unchanged at 2.6% in December. Traders should note that Fed uses PCE Price Index rather than Inflation Rate in its decision-making process.

If U.S. Dollar Index pulls back below the 103.00 level, it will head towards the next support, which is located in the 101.75 – 102.00 range.

EUR/USD

EUR/USD gained some ground despite the disappointing GfK Consumer Confidence report from Germany. The report showed that GfK Consumer Confidence declined from -25.4 in January to -29.7 in February.

In case EUR/USD stays above the 1.0850 level, it will head towards the resistance at 1.0925 – 1.0950.

GBP/USD

GBP/USD made an attempt to settle above the 1.2750 level but lost momentum and pulled back as traders reacted to U.S. economic data.

The nearest support level for GBP/USD is located in the 1.2650 – 1.2685 range. A move below 1.2650 will provide GBP/USD with an opportunity to gain additional downside momentum .

USD/CAD

USD/CAD rebounds from session lows as oil markets pull back from multi-week highs.

A move above the resistance at 1.3480 – 1.3500 will push USD/CAD towards the next resistance level at 1.3590 – 1.3620.

USD/JPY

USD/JPY is trying to settle above the 148.00 level as traders stay focused on the ultra-dovish policy of Japan’s central bank.

In case this attempt is successful, USD/JPY will head towards the nearest resistance at 149.50 – 150.00.

For a look at all of today’s economic events, check out our economic calendar.